Bank Sohar seeks $300m in syndicated loan
January 16, 2018 | 3:26 PM
by Reuters
Times file picture

Dubai: Bank Sohar is raising a $300 million, three-year syndicated loan with a margin of 2 per cent a year over the London interbank offered rate (Libor), banks leading the deal said.

The loan offers participating banks fees of up to 75 basis points (bps), sources close to the matter said.

Arab Banking Corporation and Commerzbank have fully underwritten the loan and are arranging the loan syndication as initial mandated lead arrangers and bookrunners.

Axis Bank was also hired as initial mandated lead arranger before the launch of the syndication.

Bank Sohar completed its latest syndicated loan in June last year, raising a $250 million, three-year facility, which also offered a margin of 2 per cent over Libor.

The new loan offers lenders fees of 75 bps for a minimum commitment of $25 million, 60 bps for a minimum commitment of $15 million and 45 bps for a minimum commitment of $10 million, the sources said.

The loan was launched in the market on Jan. 11, the banks arranging the loan said in a statement last week.

Bank Sohar, rated Baa3 by Moody’s and BB+ by Fitch, would use the funds for general corporate purposes, the statement said.

Bank Sohar posted a full-year net profit after tax of OMR25.5 million ($66.24 million) in 2017, up from OMR19.1 million a year earlier.

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